EU was strongly bullish the past few weeks, but couldn’t break above 900 with confidence. On the other hand, it couldn’t stay below 800 either. Now we have very strong support and resistance zones, which should break next week, since we not only have the FED meeting on wednesday, but also important inflation numbers from the US on wednesday and thursday. Nothing important should be happening until then, so I wouldn’t be surprised, if we stayed in the current range. Friday’s move, caused by employment numbers gave bears some relief, but looking deep into those numbers, they were more dovish, as full employment is down by over 600k job and the only thing that grew was part-time employment. The “green” employment number was basically just people having to work 2-3 part-time jobs intead of the full-time job they lost. Markets should catch up to that pretty quickly and we could easily see EU back above 850 early next week, unless EU parliament elections create some mess before the week starts. And on wednesday, we should have a big move, either breaking 900 on the upside or 800 on the downside. But this is all just speculation, lets see how the week unfolds.
